Carpetright shares crash after huge profit warning

The Purfleet-headquartered carpets-to-beds retailer, whose total sales fell 2.3% in the 11 week period, is now guiding towards profits "in the range of £2m to £6m" for the year ending 28 April 2018.

The chain, which has 416 shops in the United Kingdom and 136 in Europe, said sales in stores open more than a year fell 3.6pc in the 11 weeks to January 13. Kingfisher, the owner of B&Q and Screwfix, fell 3.58% to 331.7p, while sofa retailer DFS shed 3.94% to 198.2p and rival SCS Group lost 5.83% to 210p.

That was significantly below market expectations of £13m to £15.6m.

Shares in Carpetright, down 6 percent so far this year, closed Thursday at 164.5 pence, valuing the business at 112 million pounds ($156 million).

Wilf Walsh, CEO noted that there had been a positive start during the third quarter of the trading period but explained that the company saw "a significant deterioration in United Kingdom trading during the important post-Christmas trading period".

It said United Kingdom trading was impacted by lower customer footfall, with transaction numbers down significantly year-on-year.

According to the report, United Kingdom trading was impacted by lower customer footfall, with transaction numbers down significantly YoY.

Neil Wilson from ETX Capital, said: "Profits warnings rarely come alone and so it has proved with Carpetright's shocker today".

"Again it's the same old story as with other brands that have failed to adapt to changing consumer trends".

"We must also consider weaker consumer sentiment for big ticket items as a factor, as well tougher competition from a more diverse marketplace", he said.